Aron Stark signs $20.6M construction loan with Ponce for two projects in East New York

Aron Stark through the entity 1451 Sutter LLC as borrower signed a new construction loan with lender Ponce Bank through the entity Ponce Bank valued at $20.6 million for projects at 1451 and 1453 Sutter Avenue in East New York, Brooklyn.
There is a new building project, 321385513, for a 10-unit, 9,479 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, LLC with plans filed December 24, 2018 and permitted June 10, 2022, with the address 1453 Sutter Avenue, which is on the corner with Eldert Lane.
And there is a second new building project, 321385522, for a 10-unit, 7,450 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, LLC with plans filed December 24, 2018 and permitted June 10, 2022, with the address 1451 Sutter Avenue.

The deal closed on December 13, 2024 and was recorded on December 23, 2024. The prior lenders were Funding Group and Strong Entities which held debt that had an original loan amount of $2.4 million.
The owner bought the property on September 29, 2023, for $3 million. The signatory for Aron Stark was Aron Stark. The signatory for Ponce Bank was Steven A. Tsavaris.

The property

The parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,700 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $183,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $350 in OATH penalties in the last year.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has near average sales volume among other neighborhoods with $283.3 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, East New York is the 9th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing zero square feet of the 158,189 square feet. The identified owner is Aron Stark.
On the tax block, there were two new building construction projects totaling 16,929 square feet. The largest is a 10-unit, 9,479 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, Llc with plans filed December 24, 2018 and permitted June 10, 2022. The second largest is a 10-unit, 7,450 square-foot residential (R-2) building submitted by 1451-1453 Sutter Ave, Llc with plans filed December 24, 2018 and permitted March 18, 2021.

The majority, or 100 percent of the 158,189 square feet of built space are elevator buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Aron Stark owned at least six commercial properties with 62 residential units in New York City with 25,495 square feet and a city-determined market value of $3.9 million. (Market value is typically about 50% of actual value.) The portfolio has $14.9 million in debt, borrowed from Starwood Mortgage Capital and Accolend. Within the portfolio, the bulk, or 100 percent of the 25,495 square feet of built space are walkup properties, with development properties next occupying 0 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.

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